ProLogis Raises $840m in Asset Sales
ProLogis (PLD) injected good news into a struggling commercial real estate (CRE) market by raising $840m from asset sales and property fund contributions for the second quarter of 2009. As part of an effort to cut global debt, ProLogis, which leases industrial space to manufacturers and retailers, sold 136 CRE properties from Seattle to Washington DC, in 28 separate transactions. From the sales, ProLogis raised $561m, and they expect to earn an extra $96m in the second half of this year. Coupled with the shedding of the properties was a sale of one asset in Japan to GIC Real Estate for $128m earlier in the quarter. Also, healthy assets contributed €110m ($151m) to the ProLogis European Properties Fund II (PEPF). The sales and contributions help the company’s effort to wrangle corporate debt. Since September of 2008, ProLogis has trimmed 25% from its global lines of credit or $2.7bn. ProLogis’ maneuvering is a bright spot in a CRE market darkened by a weak economy. Write to Jon Prior. For a detailed look into the current commercial property crisis, please see our feature in the July issue of HousingWire magazine for the details, available from today.